BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Credit to farmers for agricultural purposes
|
|
|
Loan to a group of doctors to establish a hospital in a city
|
|
|
Loan to a sick mill owner
|
|
|
Loans given to purchase houses in posh colonies
|
Detailed explanation-1: -Credit to farmers for agricultural purposes will be considered as an advance to Priority Sector by the banks. Priority sector lending facility is provided by Reserve bank of India. It helps to provide credit facilities to farmers, micro and maro enterprises, etc.
Detailed explanation-2: -The correct answer is Agriculture. The priority sector lending by commercial banks in India is to agriculture, small-scale industries, and the weaker sector of the population. Targeted financing for the areas in an economy that are lagging behind the normal pace of development is called priority sector lending.
Detailed explanation-3: -Priority Sector refers to those sectors which the Government of India and Reserve Bank of India consider as important for the development of the basic needs of the country. They are assigned priority over other sectors. The banks are mandated to encourage the growth of such sectors with adequate and timely credit.
Detailed explanation-4: -Within the 18 per cent target for agriculture, a target of 8 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher is prescribed for Small and Marginal Farmers. 18 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.